Norway Oil and Gas Report Q1 2013

Oil production in Norway may be in decline, but the country retains considerable upside gas potential and should continue to be a major force in European energy supply for decades to come.

Discoveries of considerable size are clearly still possible in mature areas, as demonstrated by the giant Johan Sverdrup and surrounding oil finds that continue to be made. This, and fresh prospective acreage offered in the Barents Sea, should stimulate new investment from domestic and foreign operators, slow a decline in oil output and spur on gas production within our ten-year forecast period.

The main trends and developments we highlight in Norway's oil and gas sector are:

- Official agency Statistics Norway estimates that oil and gas investment could increase by more than 15%on 2011 levels to hit NOK185bn (US$32.09bn) in 2012, rising further still to NOK208bn (US$37.00bn)in 2013.

- The giant Johan Sverdrup field's total resource estimates continue to rise. Data from another high-impact find by Statoil - Geitungen - show that it could be linked to the Johan Sverdrup complex. If so, it could add another 140-270mn boe to original estimates of 2.1-2.8bn boe of recoverable resources from the field. Statoil will select a development concept by the end of 2013 and expects first oil at the end of 2018,though we forecast that production will only start to peak after 2020. Other notable discoveries made in 2012 include Statoil's King Lear play and Total's Garantiana find in October 2012.